Chapter 4 Flashcards
Define a process
Process refers to the methodology used to produce a good or service that may be profitably supplied to consumers.
Name the types of process structure of manufacturing.
- Continuous flow process
- Assembly process
- Batch process
- Job Shop process
What are the characteristics of a continuous flow process?
- One product flows through the process at any one time.
- Capital investments in this case are very high.
- Production line cannot be changed without huge losses in the production.
- Has high volume and no variation.
What are the characteristics of assemble process?
- Has high volumes and minimal variation.
- One type of a product in a straight-line configuration.
- The skills required in this process are very low, due to machine operators.
What are the characteristics of batch process?
- Has high volume and some variations.
- Each batch is completed before another batch is started.
The skills required for the batch process are lower than the job-shop process.
What are the characteristics of the job-shop process?
- Has low volume and high variation.
- Assets/equipments are arranged around the process.
- Labour and machinery have significant levels of elasticity.
What are the strategies of manufacturing process?
- Make to order strategy.
- Assemble to order strategy.
- Make to stock strategy.
What are the characteristics of make to order strategy?
- This strategy is preferred by the batch process and job shop process where there is a low volume of products being produced.
- There is a high level of product customization.
E.g building an expensive house.
What are the characteristics of assemble to order strategy?
- Small number of components are used to produce a large diversity of products.
- The assemble process begins once an order has been received.
E.g paint shop
What are the characteristics of make to stock strategy?
- Large inventories of products are available in anticipation of customer orders.
- Can satisfy a large number of customers in a short period of time.
What are the process structure of service process?
- Professional service process.
- Service shop process.
- Mass service process
What are the characteristics of professional service process?
- Great variation of services with low volumes.
- Focuses on people more than equipment.
- Highly custom-made.
E.g contracts between businesses by an attorney.
What are the characteristics of service shop process?
- Fairly high volumes of customers.
- There is a fair amount of customer interaction.
- It is highly standarized services.
E.g application for a loan at bank.
What are the characteristics of mass service?
- This process mostly uses equipment and machinery to produce the output
- There is a large number of client dealings.
Calculate productivity.
Units produced/ Input used.